Cash scarcity continues to trouble Nigerians despite the Central Bank of Nigeria (CBN) reporting a record high of N4.5 trillion in currency circulation by October 2024. While the money supply rose 4.7% from September, many citizens remain unable to access their funds due to ATM failures and withdrawal limits enforced by banks. Frustrated customers describe rationed cash disbursements, with some receiving as little as N5,000 when attempting to withdraw much larger sums. The challenges extend to market traders and Point-of-Sale (PoS) operators, further worsening economic activity in affected areas.
Experts warn that the surge in currency outside the banking system, which climbed to N4.3 trillion in October, could undermine monetary policies tied to cash reserve ratios and lending rates. In response to illicit practices like the hoarding and resale of Naira notes, the CBN has introduced stricter fines, including an N150 million penalty per offending branch, to curb such activities. These measures are part of a broader crackdown involving spot checks and mystery shopping at cash hawking hotspots to ensure fair cash distribution and maintain economic stability.
Amidst these challenges, the CBN clarified the validity of older Naira notes, affirming their indefinite legal tender status following a Supreme Court ruling. The bank also urged Nigerians to adopt electronic payment channels to reduce reliance on physical cash. Despite efforts to normalize currency management and enhance cash flow, the scarcity persists, creating frustrations for individuals and businesses alike, while raising broader concerns about the efficiency of Nigeria’s financial system.